2023_The Moderating Effect of IFRS Adoption on The Relationship Between Internal Monitoring Mechanism and Real Earnings Management of Listed Firms in Nigeria

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country Malaysia
date 2023-01-02
format General Document
id 15902
institution UniSZA
internalnotes Sila masukkan subject wajib Dissertations, Academic. Terima kasih...
originalfilename THE MODERATING EFFECT OF IFRS ADOPTION ON THE RELATIONSHIP BETWEEN INTERNAL MONITORING MECHANISM AND REAL EARNINGS MANAGEMENT OF LISTED FIRMS IN NIGERIA (PHD_2023).pdf
person Lateef Saheed Ademola
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spelling 15902 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15902 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Earnings Management (EM) Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.4.24; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Copyright©PWB2025 Corporations—Accounting 2023-01-02 304 THE MODERATING EFFECT OF IFRS ADOPTION ON THE RELATIONSHIP BETWEEN INTERNAL MONITORING MECHANISM AND REAL EARNINGS MANAGEMENT OF LISTED FIRMS IN NIGERIA (PHD_2023).pdf Lateef Saheed Ademola Moderating Effect IFRS Adoption Internal Monitoring Mechanism Real Earnings Management Firms In Nigeria International Financial Reporting Standards—Nigeria Financial statements—Standards Corporate governance—Nigeria 2023_The Moderating Effect of IFRS Adoption on The Relationship Between Internal Monitoring Mechanism and Real Earnings Management of Listed Firms in Nigeria Real earnings management becomes a concern for stakeholders and regulatory agencies because it directly affects the future value and growth of the firms. Also, real earnings management needs effective monitoring by the corporate board, as suggested by resource dependency theory and agency theory. The previous literature in developed countries, such as the United Kingdom, the United States and China, has highlighted these propositions. However, because the regulatory framework, institutional settings and strength of the internal mechanisms vary from those of developing countries, the validity of these theories on the African economy, especially in the post-adoption era of International Financial Reporting Standards (IFRS), needs to be ascertained. Therefore, this study examines the influence of internal monitoring mechanisms and corporate attributes on the real earnings management of non-financial firms listed in Nigeria with the moderating effect of IFRS adoption. The study also examines the significant reduction in the level of real earnings management after mandating the IFRS adoption. This study reviewed 2,117 articles via Bibliometric analysis, using the Scopus database of 29 years between 1992 and 2021. The study used secondary sources to extract financial data from Thomson Reuters DataStream, Bloomberg and companies’ annual reports between 2012 and 2019. The study population comprised 116 non-financial firms listed on the Nigerian Stock Exchange (NSE). A total of 74 firms were considered for the period of eight years after the study implemented the screening and filtering measures. Therefore, a panel data of 592 firm-year observations of non-financial firms were tested using regression analysis. The overall findings revealed that audit committee size, audit committee financial expertise, chief executive officer (CEO) ownership, CEO tenure, profitability, and political connection of selected board members significantly reduced the magnitude of real earnings management. Furthermore, the outcome revealed that audit committee independence, audit committee meetings, CEO financial expertise, CEO nationality and free cash flow are associated with high real earnings management. The result also showed that the interaction of IFRS adoption with internal monitoring mechanisms reduced the magnitude of real earnings management. The findings of this study will assist relevant authorities in formulating suitable policies to enhance the role and the quality of the audit committees and CEOs in organisations. Thus, the study recommends that regulators strengthen the appointment process of competent board members and CEOs to reduce the magnitude of real earnings management and assist investors in making investment decisions. Dissertations, Academic Sila masukkan subject wajib Dissertations, Academic. Terima kasih... Thesis
spellingShingle 2023_The Moderating Effect of IFRS Adoption on The Relationship Between Internal Monitoring Mechanism and Real Earnings Management of Listed Firms in Nigeria
state Terengganu
subject Earnings Management (EM)
Corporations—Accounting
International Financial Reporting Standards—Nigeria
Financial statements—Standards
Corporate governance—Nigeria
Dissertations, Academic
summary Real earnings management becomes a concern for stakeholders and regulatory agencies because it directly affects the future value and growth of the firms. Also, real earnings management needs effective monitoring by the corporate board, as suggested by resource dependency theory and agency theory. The previous literature in developed countries, such as the United Kingdom, the United States and China, has highlighted these propositions. However, because the regulatory framework, institutional settings and strength of the internal mechanisms vary from those of developing countries, the validity of these theories on the African economy, especially in the post-adoption era of International Financial Reporting Standards (IFRS), needs to be ascertained. Therefore, this study examines the influence of internal monitoring mechanisms and corporate attributes on the real earnings management of non-financial firms listed in Nigeria with the moderating effect of IFRS adoption. The study also examines the significant reduction in the level of real earnings management after mandating the IFRS adoption. This study reviewed 2,117 articles via Bibliometric analysis, using the Scopus database of 29 years between 1992 and 2021. The study used secondary sources to extract financial data from Thomson Reuters DataStream, Bloomberg and companies’ annual reports between 2012 and 2019. The study population comprised 116 non-financial firms listed on the Nigerian Stock Exchange (NSE). A total of 74 firms were considered for the period of eight years after the study implemented the screening and filtering measures. Therefore, a panel data of 592 firm-year observations of non-financial firms were tested using regression analysis. The overall findings revealed that audit committee size, audit committee financial expertise, chief executive officer (CEO) ownership, CEO tenure, profitability, and political connection of selected board members significantly reduced the magnitude of real earnings management. Furthermore, the outcome revealed that audit committee independence, audit committee meetings, CEO financial expertise, CEO nationality and free cash flow are associated with high real earnings management. The result also showed that the interaction of IFRS adoption with internal monitoring mechanisms reduced the magnitude of real earnings management. The findings of this study will assist relevant authorities in formulating suitable policies to enhance the role and the quality of the audit committees and CEOs in organisations. Thus, the study recommends that regulators strengthen the appointment process of competent board members and CEOs to reduce the magnitude of real earnings management and assist investors in making investment decisions.
title 2023_The Moderating Effect of IFRS Adoption on The Relationship Between Internal Monitoring Mechanism and Real Earnings Management of Listed Firms in Nigeria
title_full 2023_The Moderating Effect of IFRS Adoption on The Relationship Between Internal Monitoring Mechanism and Real Earnings Management of Listed Firms in Nigeria
title_fullStr 2023_The Moderating Effect of IFRS Adoption on The Relationship Between Internal Monitoring Mechanism and Real Earnings Management of Listed Firms in Nigeria
title_full_unstemmed 2023_The Moderating Effect of IFRS Adoption on The Relationship Between Internal Monitoring Mechanism and Real Earnings Management of Listed Firms in Nigeria
title_short 2023_The Moderating Effect of IFRS Adoption on The Relationship Between Internal Monitoring Mechanism and Real Earnings Management of Listed Firms in Nigeria
title_sort 2023_the moderating effect of ifrs adoption on the relationship between internal monitoring mechanism and real earnings management of listed firms in nigeria